Tuesday, 02 January 2024 12:17 GMT

Tokyo-Listed Gaming Veteran Secures $34.5M UAE Investment


(MENAFN- Khaleej Times)

KLab Corporation, a long-established mobile game developer in Japan, has re-emerged from a period of financial difficulty by executing a bold strategic shift and securing major investment from the UAE.

For several years, the company struggled amid intense market competition and a decline in blockbuster titles. Its share price fell dramatically from a historical peak of around ¥2,400 (approx. $16.0) to the ¥300 range (approx. $2.0), leaving the company deeply undervalued in the eyes of global investors.

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In 2025, founder Tetsuya Sanada returned as CEO and initiated a comprehensive restructuring, positioning the UAE as the center of KLab's next stage of growth. While the KLab brand was not yet widely recognized in the region, the company gained strong local relevance through its development of the popular Middle Eastern soccer game“Captain Majid,” based on the globally beloved Captain Tsubasa franchise.

The turning point arrived on December 5, 2025, when KLab announced a strategic investment of ¥5.1 billion (approximately $34.5 million) from Ultimate Classic Investment LLC (UCI), a rapidly rising investment firm based in the UAE.

Alongside this capital partnership, KLab introduced its groundbreaking“Dual Gold Treasury Strategy.”

Inspired by the treasury approach employed by MetaPlanet - which achieved a nearly 380x surge in valuation by adopting a Bitcoin (BTC) strategy similar to MicroStrategy's - KLab's model advances the concept further.

The dual strategy combines Bitcoin, a high-growth digital asset and physical gold, a globally trusted, stability-anchoring store of value. This balanced approach is designed to create a long-term financial structure that offers both resilience and growth potential - providing investors with a strategy that is not solely dependent on cryptocurrency price fluctuations.

A UCI executive commented:“KLab's share price previously traded around ¥2,400, yet it now remains in the low ¥300 range, representing significant undervaluation. Our initial target is a return to ¥2,400. If the market begins to recognize KLab's business model - one that does not rely on Bitcoin price movements - we believe the company could surpass MetaPlanet's growth potential.”

In September 2025, the company announced“Dragon Quest Smash Grow,” a major new title in the globally celebrated Dragon Quest RPG series. Previous Dragon Quest mobile games have generated more than $4 billion in global revenue.

Early feedback suggests this upcoming release may become one of KLab's most successful titles to date, potentially generating hundreds of millions of dollars in annual revenue.

Unlike companies that pivoted to digital-asset strategies as a last resort, KLab remains firmly rooted in a strong and expanding core business - supported by globally recognised IP and a robust development pipeline.

Furthermore, its listing on the TSE Prime Market, Japan's premier stock exchange, strengthens its appeal to institutional investors, offering an advantage over MetaPlanet, which is listed on the smaller TSE Growth Market.

To reinforce its commitment to the Middle East, KLab partnered with the Century Finance Group to launch an ambitious investor-relations initiative across the UAE.

The campaign premiered at the F1 Abu Dhabi Grand Prix (December 5–7), where KLab welcomed VIP clients and influential investors through Century's extensive regional network.

This strategic outreach positioned KLab prominently on the global stage and generated strong interest from high-net-worth individuals and emerging institutional partners.

CEO Tetsuya Sanada stated:“Pursuing new opportunities in the UAE has proven to be the right decision. KLab aims to become one of the few Japanese listed companies to build a strong presence in the region. This is only the beginning - we plan to establish a local subsidiary in the UAE next year to expand game development and IP services.”

“The UAE offers not only capital but also strategic value. Its role as a neutral global financial center, combined with strong liquidity and long-term investment perspectives, makes it an ideal base for KLab's next growth phase. In addition, KLab holds a unique position that allows us to work preferentially with world-class Japanese animation IPs that Japan is proud to present to the global market. Japanese anime already enjoys strong popularity in the UAE, and we believe investment in high-quality IP will continue to expand further in the region. We view this investment as a foundation for unlocking future value rather than a short-term financial transaction,” a company statement said.

Following the investment announcement, KLab's share price surged over multiple sessions, recording the highest rate of increase on the TSE Prime Market on December 9.

The positive market reaction significantly outweighed concerns regarding theoretical dilution associated with new share issuance.

With strategic UAE capital, an innovative and secure treasury structure, and a powerful global gaming portfolio, KLab is positioned not only to become the next MetaPlanet, but potentially to exceed it.

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Khaleej Times

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